What is reseller hosting and should I be doing it?

As the digital world evolves, opportunities open up and far-sighted people and entrepreneurs make the most of them. AirBnB, Uber, Snapchat and other global industries(all successful despite their issues) could not have existed 20 years ago without the work of the internet pioneers that went before them; and those very same internet pioneers wouldn’t have been successful without the work of others before them, and so on.

At a smaller scale, website owners and hosting companies can also find their niche, offering services that are new and clever or simply by streamlining an existing process.

Take web hosting, for example. Long gone are the days when a young company needs to use its own hardware to host a website, as it is often a lot more efficient to rely on a cloud/SSD server. However, the relatively new phenomenon of reseller hosting allows entrepreneurs and business owners to take things a stage further by letting them rent space which they then rent on to another party.

A simple example would be the web design company that rents space from a hosting provider, and then rents that space out to a start-up/SME, as well as designing its site.

It’s possible that the SME owner doesn’t even know what’s going on or that it is the ‘third link in the chain’. All that SME owner can see is that it is renting a space and receiving a service, and that’s a good thing.

The designer, or whoever is reselling the service, might have multiple clients renting the space at any one time. And while at first glance reselling might seem like a digital form of subletting a home – borrowing space that isn’t yours, and then selling its usage on to someone else. However, there are no legal issues with reselling cloud space; in fact, quite the opposite, with some server companies creating reseller packages and encouraging their usage in an entrepreneurial spirit.Crucially, reseller packages allow you to brand your web hosting company on the site with the permission of the hosting provider, while the customer remains unaware of the ‘upstream’ hosting provider.

The reseller has the advantage of being able to set up sites quickly, without having to run through the process of setting up servers and hardware, so everyone starts making money or gaining a site immediately. Typically, a reseller package might include disc space, bandwidth, hosting, and support. Also, just like the SME, the reseller can upgrade their package to take on more clients or bigger projects for any one client.

The decision to start a reseller hosting business really depends on whether you want to put in the time and effort to build your own hosting company and then start renting out the space, or pay out a monthly fee to a host company but also have a good support network and adaptability to take on clients quickly and efficiently. As an example of other advantages, a VPS reseller account gives both reseller and SME owner the chance to scale upwards quickly, on sites that are fully maintained – giving them both more time to concentrate on expanding and growing their businesses in 2017.

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